A consensus was reached after Virginia governor James Gilmore proposed a five-year extension in lieu of agreement on how the transition to taxation could be made. The commission is also expected to recommend that Congress repeal the 3 percent telephone excise tax that mars the phone bills of Americans. Another recommendation would urge Congress to permanently ban taxes on Internet access. (Maybe that modem tax hoax had some effect after all.) MORE >>
Divided Commission Expected to Recommend Extending Net Tax Freeze
Online shoppers still pay no sales tax for most purchases,
but how long can the holiday last? The 19-member Advisory
Commission on Electronic Commerce is scheduled to issue
recommendations to Congress this week. Despite the fact
that a majority of commission members are reportedly in
favor of leveling the playing field between bricks-and-mortar
businesses and Internet dot-com stores, they're not
expected to suggest repeal of the federal tax freeze
anytime soon. The problem is no one agrees on how sales
taxes, usually levied by states, could be set and collected,
or by whom.